Can I fire an partner for irrational decisions that are detrimental

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Can I fire an partner for irrational decisions that are detrimental to the well being and the survival of an sub chapters corp in new jersey ? I I claim Metal Instability as grounds for termination, if I have proof of this?

Thank you for your question. I am a licensed New Jersey professional. Please permit me to assist you with your concerns.

That very much depends. What are the percentages of ownership here? In addition, by 'firing', you mean removing from ownership of company, or removing from working for the company, as those are two different issues. Are there articles of operation in place denoting how a partner can be removed? Are both of you listed as identical shareholders? Are you both 'general' shareholders that can make business decisions?

As an employee. He will remain as a partner till I can arrange a buy-out. There aren't any buy laws about this. In the buy-laws as President I have complete control over all aspects of day to day operations of the company. And yes we are both equal partners. I'm recorded as the President, and the only managing partner of the sub chapter corp.

Thank you for your follow-up. That helps tremendously. If you are the only 'managing' partner, then you have the legal right and the ability to make decisions on behalf of the company, which does include hiring and firing. One partner CAN fire the other so long as he has the authority to do so, or the bylaws permit such actions. The justification here for your authority would be your managing partner status, and that you have complete autonomy and control over day-to-day operations. You cannot obviously remove him from the company without a buyout of some sort, or a dissolution, but termination from position would be possible if he himself does not having hiring and firing authority (as he could then simply re-hire himself to work). But if the power is solely yours, then you can indeed terminate.